Globalisation, multinationals and productivity in Japan’s lost decade

Kneller, Richard; McGowan, Danny; Inui, Tomoyuki; Matsuura, Toshiyuki

doi:10.1016/j.jjie.2011.12.002

Cited by 8 publications

(4 citation statements)

References 61 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…This interpretation would be consistent with the finding of Kneller et al. () that Japanese multiplant firms close their least efficient plants, but that these are still more productive than the average plant in the economy.…”

supporting

confidence: 91%

The Direct Contribution of FDI to Productivity Growth in Britain, 1997–2008

Harris

Moffat

2013

World Economy

View full text Add to dashboard Cite

This paper considers the contribution of foreign‐owned plants and firms to aggregate total factor productivity (TFP) growth in Britain for 1997–2008 using data from the Annual Respondents' Database. The contribution of different sub‐groups is further decomposed to show the role of continuing plants vis‐à‐vis reallocations in output shares. TFP is calculated using system GMM estimation. Taking into account the smaller initial size of the foreign‐owned sector in 1997, foreign‐owned plants contributed relatively more to aggregate productivity growth than UK‐owned plants over the period. This strong performance is mostly the result of reallocations of output shares towards high productivity continuing plants and the opening of high productivity plants.

show abstract

supporting

confidence: 91%

The Direct Contribution of FDI to Productivity Growth in Britain, 1997–2008

Harris

Moffat

2013

World Economy

View full text Add to dashboard Cite

show abstract

“…; Kneller et al . ). The final one places Japanese firms in a wider East Asian economic context (Hu ; Iguchi ; Kim ; Witt and Redding ).…”

Section: Findings By Categorymentioning

confidence: 97%

Does Japan Still Matter? Past Tendencies and Future Opportunities in the Study of Japanese Firms

Endo

Delbridge

Morris

2014

Int J Management Reviews

View full text Add to dashboard Cite

This paper engages with the question ‘does Japan still matter’ by systematically reviewing publication patterns in peer‐reviewed academic journal articles addressing Japanese firms and their management practices, illustrating the academic discourse surrounding Japanese firms over four decades, and by identifying future research opportunities. Initially, particularly from the 1980s when Japanese firms came to prominence, these practices tended to be identified as ‘best practice’. However, at least in part due to socio‐economic changes, this tendency has become less prominent since the ‘bubble economy’ burst. Instead, three broader developments are observed: the examination of the continuity and change in the traditional Japanese model, a more complex approach that involves multiple themes of research, and leveraging new contexts to examine Japanese firms, including the long‐term recession, the rise of the East Asian economy, and the increasing importance of corporate social responsibility.

show abstract

“…Hall and Van Reenen (2000) suggest that there is an equal and proportionate relationship between tax exemptions and R&D investment that largely determine the location of R&D activity. Similarly, Djankov et al (2010) and Kneller et al (2012) have found that tax policy can affect other aspects of firm productivity performance such as entry and exit decisions. So far, only Arnold et al (2011) have studied directly the link between corporate tax and productivity showing that the growth of firms is negatively affected by taxation in more profitable industries.…”

Section: Introductionmentioning

confidence: 93%

Measuring Firm-Level Productivity Convergence in the UK: The Role of Taxation and R&D Investment

Bournakis¹,

Mallick

Kernohan³

et al. 2013

SSRN Journal

View full text Add to dashboard Cite

This paper examines the direct effects of corporate tax on firm productivity along with the interaction effects of tax policy and R&D activity on productivity at firm level for over 13,062 firms during 2004-2011. Our main findings are first, that there is evidence for productivity convergence and we find that there is a positive robust relationship between R&D and firm productivity, whereas tax policy has a negative distortionary effect on TFP. Second, firms with greater export orientation do not seem to achieve much improvement in productivity, whereas the favourable productivity effect in the case of R&D-based firms suggests that if there are tax incentives in place for R&D type activity, it can promote innovation and drive productivity convergence (lagging firms closing the technology gap with those at the frontier), particularly so when there is a continued decline in overall economic activity. The results also show a significant non-linear effect of tax rate on firm-level productivity, identifying an inverse U-shaped relationship. Keywords Non-technical summary and policy implicationsThis paper argues that technological innovation is vital to enhancing firm-level productivity or efficiency growth, and thus investment in R&D can play a larger role in determining the differences in productivity across firms and help achieve productivity convergence. During periods of general economic slowdown, corporate tax policy may drive such innovation and therefore the paper examines the direct effects of corporate tax on firm productivity along with the interaction effects of tax policy and R&D activity on productivity at firm level for over 13,062 firms during 2004-2011. Our main findings are first, that there is evidence for productivity convergence and we find that there is a positive robust relationship between R&D and firm productivity, whereas tax policy has a negative distortionary effect on TFP. Second, firms with greater export orientation do not seem to achieve much improvement in productivity, whereas the favourable productivity effect in the case of R&D-based firms suggests that if there are tax incentives in place for R&D type activity, it can promote innovation and drive productivity convergence (lagging firms closing the technology gap with those at the frontier), particularly so when there is a continued decline in overall economic activity. The results also show a significant nonlinear effect of tax rate on firm-level productivity, identifying an inverse U-shaped relationship with a threshold level of around 45% as the optimum productivity-enhancing effective tax rate.

show abstract

Globalisation, multinationals and productivity in Japan’s lost decade

Cited by 8 publications

References 61 publications

The Direct Contribution of FDI to Productivity Growth in Britain, 1997–2008

The Direct Contribution of FDI to Productivity Growth in Britain, 1997–2008

Does Japan Still Matter? Past Tendencies and Future Opportunities in the Study of Japanese Firms

Measuring Firm-Level Productivity Convergence in the UK: The Role of Taxation and R&D Investment

Contact Info

Product

Resources

About